Clear Science and Know-how (CSTL) has emerged as the worldwide chief in most of its product classes on the again of area of interest product choices catering to polymer inhibitors/super-absorbents, anti-oxidants for the meals/feed business, pharma, dwelling, and private care. It has additional bolstered its worth chain by way of novel manufacturing know-how primarily based on inexperienced chemistry for one of many key uncooked supplies. CSTL’s streak is pushed by its sturdy R&D capabilities in each plant technological/engineering growth in addition to course of innovation (primarily based on greener chemistries). This has led to the gross margin increasing to 76 per cent in FY21 from 62 per cent in FY16 (the EBITDA margin expanded from 33 per cent to 50.5 per cent over FY16-21).
The corporate has posted a strong income CAGR of practically 29 per cent within the final 5 years. We count on CSTL’s revenues to develop at a CAGR of about 23 per cent over FY21-24 (on the again of capability additions at Unit-III in phases over FY22). The corporate plans to seize greater market share for its merchandise.
We provoke protection on CSTL with a ‘Purchase’ score. In our recently-released sector initiating report ‘Genie is out’, we had highlighted that usually, corporations with a better proportion of specialty chemical compounds command richer valuations.